Indian shares fell 1 percent on Friday, while the rupee hit its weakest point since early April amid concerns that the government`s plan for a stimulus to halt an economic slowdown may have a negative impact on the fiscal deficit.

India is considering a plan to loosen the fiscal deficit target so that it could spend an additional 500 billion rupees ($7.71 billion) in the financial year ending March 2018, two government sources said on Thursday.

Finance Minister Arun Jaitley had said earlier that the government was looking for ways to lift economic growth, which slipped to a three-year low of 5.7 percent in the quarter to end-June.

Global investor sentiment was subdued after North Korea said it might test a hydrogen bomb in the Pacific Ocean and escalated a war of words with U.S. President Donald Trump.